Urgency Mounts to Avert 1099-K EBay, PayPal Tax Form Chaos

Everyone, it seems—including many e-commerce platforms like eBay Inc. and PayPal Holdings Inc.—wants lawmakers and the IRS to prevent millions of Americans from receiving a tax document they may have no idea how to handle. But action will need to happen quickly.

A law that significantly expands the scope of who needs to receive 1099-K forms is set to affect millions of unsuspecting taxpayers in January, absent legislative action or new guidance. Companies are lobbying Congress to change the law, while preparing for the flood of questions if it doesn’t. The IRS is leaning on these companies to help ...